SFC Energy starts production of hydrogen and methanol fuel cells in India - Federal Minister Robert Habeck opens manufacturing facility in New Delhi/Gurgaon

SFC Energy starts production of hydrogen and methanol fuel cells in India - Federal Minister Robert Habeck opens manufacturing facility in New Delhi/Gurgaon

• Production of hydrogen and methanol fuel cells with long-standing Indian partner FCTecNrgy Pvt Ltd
• Annual revenue contribution of around EUR 100 million expected in the medium term
• Current major orders with a total volume of over EUR 33 million

Brunnthal/Munich, Germany, July 20, 2023 – SFC Energy AG (F3C:DE, ISIN: DE0007568578), a leading supplier of hydrogen and methanol fuel cells for stationary and mobile hybrid power solutions, has launched the manufacturing of hydrogen and methanol fuel cells at its New Delhi/Gurgaon site in India in the presence of Federal Minister Dr Robert Habeck. Together with the long-standing Indian partner FCTecNrgy Pvt Ltd ("FCT"), the production facility was built and handed over in just six months. In the medium term, annual sales of around EUR 100 million are to be generated here with the development and production of innovative energy supply systems. The local production is in line with the "Make in India" initiative and will make an important contribution to a climate-friendly positioning of the Indian economy.

"The climate-friendly transformation of the economy is an urgent challenge and a significant common concern for Germany and India. Hydrogen and its derivatives will play an important role in this transformation. By producing locally, SFC Energy makes German technology more accessible to India and its economy, thus making an important contribution to the success of the energy transition," said Dr. Robert Habeck, Federal Minister for Economic Affairs and Climate Protection.

India has formulated its own targets for the expansion of renewable energies and the development of green hydrogen production by 2030. The Indian government is also striving to replace polluting energy systems such as diesel generators with sustainable energy solutions in order to significantly reduce CO₂ emissions. On 4 January 2023, the Indian government adopted the "National Green Hydrogen Mission" proclaimed by Prime Minister Narendra Modi, under which, for example, generators in railways, the military and in critical infrastructure will also be replaced with emission-free fuel cells.

The technology pioneer SFC Energy has already been active in India since 2016 and is now investing in the local market development as well as in its own production capacities. The mobile and stationary fuel cell solutions manufactured in the new factory produce clean electricity based on hydrogen and methanol. SFC's customers in India already include public sector clients and civilian users of clean hydrogen- and methanol-based power where grid supply is not available or not stable enough. Most recently, the company booked major orders worth EUR 33 million for fuel cell-based energy supply for the Indian armed forces. Other current major projects include the planned replacement of diesel generators at Indian Railway and Border Roads Directorate as well as various smart city projects.

"As a technology leader with the experience of more than 65,000 fuel cells installed worldwide, SFC Energy is a perfect partner to support the Indian government in its ambitious goals towards a sustainable and climate-friendly energy supply. With the start of manufacturing at the new site in Delhi, we fulfill the 'Make in India' requirements as well as the 'National Green Hydrogen Mission' and benefit from our long-standing presence and partnership in this growth market," Dr. Peter Podesser, CEO of SFC Energy AG, explains the investment. "As the world's most populous country, India is the market with the highest growth dynamics in Asia for this technology, which can contribute not only to climate protection but also to air improvement. Demand is clearly exceeding our expectations. In the medium term, the aim is also to make green hydrogen and green methanol available on a decentralised basis."

In February 2023, during the meeting between German Chancellor Olaf Scholz and Prime Minister Narendra Modi, the agreement between SFC and FCT was signed, marking the starting point for the production of fuel cells in India. In the future, SFC's subsidiary SFC Energy India Ltd. will be responsible for the production of EFOY Hydrogen and EFOY Methanol fuel cells as well as quality assurance, while FCT will continue to be SFC's "Go To Market" partner. In this role, FCT will be responsible for the design, development, installation and integration of custom fuel cell solutions, as well as the development of other key peripheral system components for such solutions and after-sales service. To underline the strategic importance of the partnership, SFC Energy India and FCT have agreed on a mutual equity participation of the local companies.

The 35,000-square-feet manufacturing and sales site will employ up to 100 people in the first phase. The expansion of the production will take place in several steps. The investment volume over the coming years is up to EUR 10 million.

For more information on SFC Energy's Clean Energy and Clean Power Management solutions, visit sfc.com.

About SFC Energy AG
SFC Energy AG is a leading provider of hydrogen and methanol fuel cells for stationary and mobile hybrid power solutions. With the Clean Energy and Clean Power Management business segments, SFC Energy is a sustainably profitable fuel cell producer. The Company distributes its award-winning products worldwide and has sold more than 65,000 fuel cells to date. The Company is headquartered in Brunnthal/Munich and operates production facilities in Germany, the Netherlands, Romania, and Canada. SFC Energy AG is listed on the Deutsche Boerse Prime Standard and has been part of the selection index SDAX since 2022 (GSIN: 756857, ISIN: DE0007568578).

SFC IR and Press Contact
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Susan Hoffmeister
Phone: +49 89 125 09 03-33
Email: susan.hoffmeister@sfc.com
Web: sfc.com